Since the 80s when the economy nosedived and people’s purchasing power dwindled, there has been an increase in the demand for imported partially used cars and parts in Nigeria’s automobile industry. And though government has on several occasions imposed a ban on the importation of cars above eight years of age to curb the influx of old automobiles to the country, these cars are still found in quantum on our roads. Alhaji Barde Ikon-Allah, vice chairman, Niger State Motor dealers association of Nigeria and CEO, Barde Motors Nigeria Limited in this interview with Salifu Usman, spoke on why these menaces may never be completely eradicated from the Nigerian society.
You have been in automobile business for two decade now. What will you say is responsible for the influx of fairly used cars in Nigeria?
I have been in this for the past two decades and I can confirm that the huge demand for fairly-used imported cars, popularly called ‘Tokunbo,’ by millions of middle income earners has continued to expand yearly. For us, who are in the business, we make more sales and profit from Tokunbo cars than new ones because of the nature of the business and demand by the people. The high cost of importation and port clearance procedure of brand new cars account for why fairly-used cars are in huge demand.
The increase in demand for Tokunbo cars can also be attributed to their affordability. Because, besides the design attributes of brand new cars, some of the fairly-used cars compete in terms of durability and other attractive value-added components like phones, GPRS, DVD player, among other fascinating features. Most American and European specifications are in high demand in the FCT and its environs apparently because of their perceived ruggedness and availability. Nigerians like good and affordable things, so they prefer to go for better specifications.
The prevalence of Asian vehicles on the Nigerian auto landscape began in 2000 and gathered momentum by 2003 after the revolution in the telecommunications industry. Firstly, the coming of these Asian automobiles was meant to take care of the re-emerging middle class, with more disposable income to spend.
I see the influx of Asian cars as a function of the economic situation in the country. Nigerians have learnt to spend wisely; with the hardship in the system pushing a lot of homes, whether middle or low-income earners, to control their purchase options, especially on automobiles. The high price of Japanese and European cars and the Chinese and Korean budget cars offer almost the same in terms of features, so Nigerians began to appreciate Asians automobiles as a welcome option.
Besides, no matter the condition of a brand new car, it is still better than the best tokunbo out there. At least you are sure that unlike used cars, it would not break down easily; not in its first or second years.
Don’t you think that banning the importation of cars will safeguard local industries?
Government can help reduce importation of cars if, among other things, they stop wasting scarce resources on posh cars. For instance, why would members of the House of Representatives buy the official cars they used during their tenure? Shouldn’t the cars be made available for the next set of law makers? The government really needs to stop talking and start taking proactive measures that will develop our local industries.
The government established the Nigerian Automotive Council (NAC) to develop the production of made-in-Nigeria cars, but has NAC done much in that regard, even with the two percent duty it collects from every car imported into the country?
Nigerians spend billions importing vehicles because the transport system in this country is totally disorganised. We do not have a rail system; we do not utilise our water ways; the public transport system is a mess; the roads are bad; why won’t the country spend so much importing cars?
In developed nations, people do not rely so much on their cars to move around in comfort; they use trains to make up. The transport system is so organised that a person is not pressured to buy a car. But in Nigeria, the poor condition of commercial buses, coupled with the recklessness and indiscipline of bus drivers would want to make the average Nigerian save up his last money to buy a used car. If there is an enabling environment, the present automobile industries would stop importing fully built vehicles, and start manufacturing and assembling them, just like it used to be in the 80s.
What is the way forward?
We should develop programmes and make policies that would support, promote and advance the future as well as sustain the local automotive sector. The vision 20-2020 must be revisited to ensure that power, infrastructural and development of the automotive sector take the front seat. Nigeria cannot continue to be a consumer nation.
We have the human and material resources to be among top developed nations in the world but negligence and corrupt altitude has put us on the back seat for too long. We also take everything for granted and rely on other countries for survival.
Let me tell you one terrible experience I had just recent, July precisely. I was sent to prison for three-days by a Suleja Chief Magistrate and what I discovered about our prisons is not pleasant. Our prisons lack humane face policy. Once you have been taken to prison for an offence, guilty or not, and you do not have anybody outside looking for you, you are dead. There is nothing in the prisons that gives you hope of life. We were over 50 in a room with a single toilet that we had to queue up to use every day.
?
Most of the Nigerian prisons currently contain twice the number of inmates they were intended to house, especially Awaiting Trial Persons (ATPs). The inhuman conditions in our prisons tell a lot about the terrible situation Nigerians are going through on daily bases.
How come we Import everything these days?
Massive importation of cars began when local manufacturing plants could not bear the high cost of production in Nigeria. Production capacity reduced and manufacturers could not meet up with local demand. Production capacity did not just reduce, tens of thousands of jobs were lost. The importation of fully built vehicles started en masse.
Major reason why Nigeria does not have a vibrant industrial sector is because the government relies so much on income accrued from the petroleum sector. Not much has been done to diversify the economy. Vision 2020 will remain a pipe dream unless the more or less dormant active industrial sector is boosted. Nigeria cannot become one of the 20 developed nations in the world with the kind of industrial sector that is on ground now.
Look at manufacturing, how many industries are still in operation? How many of the industrial goods we use in the country are manufactured here? How much of our industrial goods do we export? The industrial sector cannot function if measures are not put in place for it to function. Provide social amenities, roads, electricity, and make the industrial sector attractive for both Nigerian and foreign investors to establish car manufacturing factories in Nigeria. Then we can talk of baning used cars in Nigeria.